Posted: January 21, 2021
Rapid City
Agenda Item Summary

Agenda Item Ref. #: WS012721 28

Agenda Item Title:

Approve 2021 Insurance Renewal Amounts for Property, Liability, and Excess Worker's Compensation

Origination Group:
City Council Working Session
Origination Meeting Date:
City Council Hearing Date:
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
Attached is a summary of the renewal rates for the City’s insurance coverage for 2021. Normally, you would have approved the renewal before the end of 2020, but in response to some of the rate increases the Insurance Committee decided to take a look at a few of the coverages to see if there were alternative coverage options that could save on premium. Despite the delay coverage has been bound and the City is fully insured for 2021. The largest premium increase was in property coverage. This increase is driven by both the City’s claim history and increased property damage claims nationwide. The majority of our claims under this policy are hail related and somewhat out of our control. We are working on reducing our hail damage claims by taking hail into consideration for building projects and discussing whether or not to make claims that may be covered, but are primarily aesthetic rather than functional. Our increase in liability coverage was capped at 3% based on a multi-year agreement with Travelers that expires after this year. However, for next year’s renewal we will go out and obtain quotes from multiple insurers. While our premiums are still almost certain to increase in 2022, by obtaining competitive quotes we are hoping to somewhat blunt the size of next year’s increase. Excess workers compensation insurance is another increase that is being driven as much by industry wide considerations as it is by our internal claims. This year we switched the 3rd party administrator for our work comp claims and have been happy with their performance. One of the reasons for the switch is that they were willing to work with us on proactive approaches to reducing our work comp liability to help better control the costs. The overall increase is higher than the amount budgeted and may require a supplemental appropriation towards the end of the year depending on the various departments’ ability to absorb the increased premium costs.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center


Origination Recommendation Action:

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